Abstract

The year 2003 was a momentous one for the energy sector in India, marked by two important and distinct developments. First, the legal framework governing the electricity sector was completely changed to make way for more progressive enabling legislation that would eventually enable a complete restructuring of the electricity sector and support greater private participation and growth in various aspects of generation, transmission, and distribution. Secondly, liquefied natural gas (LNG) achieved the status of a viable source of natural gas to fuel power generation and fertilizer industries with the completion of the first LNG import and regasification facilities. The opening of exploration and production of petroleum to private participants has started to give dividends as discovery of two large gas fields off the eastern coast of India has led to formulation of plans for a national gas pipeline grid to enable the gas to reach existing markets in northern and western India. This article seeks to discuss these major developments and also to evaluate the expectations surrounding them.